Help interpreting a will

chad95

A loved one has sadly passed a way and I am an Executor and trustee named in the will. I am having trouble understanding part 7(b). 

6. I give devise and bequeath all my real and personal estate of whatsoever nature and wheresoever situate not otherwisse disposed of bythis Will or any Codicil to it (including any property over which I may have a general power of appoointment or disposition by Will) to my Trustees upon trust to sell call in and convert the same into money with full power in their absolute and uncontrolled discretion to postpone such sale calling in and conversion for sso long a period as they shall think fit without bneing resposible for loss. 

7. My trustees shall hold the net proceeds of such sale calling in and conversion together with my ready money and any property for the time being remaining unconverted upon the following trusts: 
(a) Upon trust to pay thereout all my just debts legacies funeral and testamentary expenses and to any trusts declared earlier and subject thereto
(b) Upon trust absolutely for such of Charity #1 and Charity #2 as shall survive me in equal shares if more than one 

I believe that part 6 is saying that the house and all of the estate is to be liquidated into money. Part 7(a) is saying all funeral expenses and debts must be paid off using this money. 

With regards to part 7(b), does this mean that any residual money left after paying off debts, funeral expenses and beneficiaries goes to the two charities, or will the trustees be able to determine the amount of money that goes to the charities?

Any advice much appreciated

poseidon1

You have omitted to quote the terms of  clauses related to any legacies to beneficiaries who are not charities, and any trusts declared in favour of non charities.



Be that as it may, subject to paying out all estate expenses, taxes, debts , legacies , and trusts for non charities ( if any such were declared) , then what is left in the estate ( the residue), belongs to the two named charities outright.

This will be a defined amount after all other calls on the estate have been met, so detailled estate accounts will need to be drafted in due course to satisfy the charities that they have received what is due.

Since charities are involved as residual beneficiaries, you have no option other than to sell the house to meet the charities' ultimate entitlements ( notwithstanding clause 6 power of postponement).

Depending on the size of the estate, its complexity  and whether IHT is in point , this could all be quite an onerous undertaking to get right, so consider the possibility of seeking specialist advice from a STEP qualified solicitor or accountant, to ensure you don't fall foul of your executor obligations towards the charities.

chad95

poseidon1 said:

You have omitted to quote the terms of  clauses related to any legacies to beneficiaries who are not charities, and any trusts declared in favour of non charities.



Be that as it may, subject to paying out all estate expenses, taxes, debts , legacies , and trusts for non charities ( if any such were declared) , then what is left in the estate ( the residue), belongs to the two named charities outright.

This will be a defined amount after all other calls on the estate have been met, so detailled estate accounts will need to be drafted in due course to satisfy the charities that they have received what is due.

Since charities are involved as residual beneficiaries, you have no option other than to sell the house to meet the charities' ultimate entitlements ( notwithstanding clause 6 power of postponement).

Depending on the size of the estate, its complexity  and whether IHT is in point , this could all be quite an onerous undertaking to get right, so consider the possibility of seeking specialist advice from a STEP qualified solicitor or accountant, to ensure you don't fall foul of your executor obligations towards the charities.

Thank you for your detailed response. 

The terms i omitted were pecuniary legacies made to 3 people, no trusts were mentioned. 

So basically, after the estate expenses, taxes, debts and pecuniary legacies have been paid, the residual estate (having sold the house) will go to the two said charities in a 50/50 split is this correct?

poseidon1

chad95 said:

poseidon1 said:

You have omitted to quote the terms of  clauses related to any legacies to beneficiaries who are not charities, and any trusts declared in favour of non charities.



Be that as it may, subject to paying out all estate expenses, taxes, debts , legacies , and trusts for non charities ( if any such were declared) , then what is left in the estate ( the residue), belongs to the two named charities outright.

This will be a defined amount after all other calls on the estate have been met, so detailled estate accounts will need to be drafted in due course to satisfy the charities that they have received what is due.

Since charities are involved as residual beneficiaries, you have no option other than to sell the house to meet the charities' ultimate entitlements ( notwithstanding clause 6 power of postponement).

Depending on the size of the estate, its complexity  and whether IHT is in point , this could all be quite an onerous undertaking to get right, so consider the possibility of seeking specialist advice from a STEP qualified solicitor or accountant, to ensure you don't fall foul of your executor obligations towards the charities.

Thank you for your detailed response. 

The terms i omitted were pecuniary legacies made to 3 people, no trusts were mentioned. 

So basically, after the estate expenses, taxes, debts and pecuniary legacies have been paid, the residual estate (having sold the house) will go to the two said charities in a 50/50 split is this correct?

Yes, this is the outcome. Hopefully no IHT exposure to complicate the calculations.